«Stable wedge cut and thirteenth salary taxed at 15% in 2024»- Corriere.it

Deputy Minister, like Agriculture Minister Lollobrigida, interviewed yesterday by Corriere, do you want to deny that there is a clash in the government over appointments, in particular over the new commander of the Guardia di Finanza, a position that concerns you closely?
Look – replies Maurizio Leo, Deputy Minister of the Economy – as you know, I was not in the Council of Ministers on Thursday. But there is no confrontation. I guarantee it, especially since I am very close to the Guardia di Finanza, where I have been teaching since the 1980s, from the non-commissioned officers’ school to the academy and upper course. I know all 14 corps generals, all potential candidates to be commander. Each with a very high profile, an important career and many with two or three degrees. So they are all very deserving.

Who is your candidate?
If we could make all 14 become one, that would be my candidate.

Certainly, his party, the Brothers of Italy, is pushing for De Gennaro while the League for Sirico. Otherwise you would have already chosen the commander.
No. The government has just paused for reflection to choose carefully on the basis of the curricula. The knot will be untied shortly.

Let’s clarify the wedge cut that you decided with the law decree of May 1st. How much is it worth at most?
Gross wages of €25,000 will add up to a net gain of around €100 per month, including previous wedge cuts. This is the maximum increase. Over 25 thousand and up to 35 thousand the overall cut of six points. In this range, therefore, the advantage will go down a bit compared to 100 euros. In the coming days we will be able to give more precise examples.

The cut runs until next December. Will you make it structural?
In the meantime, the government has strengthened the purchasing power of households, given that inflation is still high. But, evidently, there is also a structural need, so to speak, given the high level of the tax-contribution levy on workers. For this reason, the will is certainly to stabilize the benefit. It is not possible to think of taking away next year what has been decided to give now. However, this will have to be done having in mind that there are financial compatibilities to be respected, which will be clearer in the autumn with the Def update note.

Given that the reduction of personal income tax should start in 2024, could the wedge cut be absorbed in this operation?
I believe that the two paths can coexist, even if a careful evaluation of the resources is needed. difficult to make predictions today. But some data allow for cautious optimism, in particular the preliminary estimates on GDP for the first quarter which signal growth of 0.5%, with a dynamic of 1.8% over the whole of 2023: a significantly higher result than forecast of the Def (+1%). In addition, in a few months it will be possible to quantify other savings: I am thinking of the reorganization of tax expenditures and also of the revenue from extra profits in the energy sector.

In Parliament he said that there will be a pruning of tax credits which amount to 36 billion Cubans. And on tax expenditures? Better a linear or selective cut?
What I would like to say is that both on tax credits and on various deductions and deductions – always making the necessary exceptions – the limit has really been exceeded. There are 226 tax credits, which amount to 36 billion Cubans. There is an urgent need for rationalization. The same goes for tax expenditure. At the ministry we are working out all possible hypotheses. premature to give examples or talk about linear or selective cuts.

Could the thirteenth with the least taxes you mentioned in Parliament take effect as early as next December or in 2024?
In 2024, when the delegation will begin to be implemented. It also provides for the incremental flat tax for employees. I believe that the thirteenth month can be assimilated to an “additional income” and therefore treated with the reduced rate of 15%. This, among other things, would support household consumption in a particular period. It would be a very important signal, always taking into account resources and the fact that forward escapes are not possible.

So far we have talked about the employees. What will there be for the self-employed?
Irap will be eliminated for personal companies and professional associations. Then there are the simplifications, starting with the calendar of tax deadlines. Again: for professionals who make use of employees we will have the reduction of withholding taxes on their remuneration and the fiscal neutrality of business combinations. Personal companies in ordinary accounting will be able to opt for IRI, making the system neutral with respect to the legal form chosen.

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